What to Look for When Buying Foreclosed Homes in Michigan

The foreclosure market in Michigan has grown drastically in the past few years because of the credit crunch. Although the number of foreclosures may have come down, the number of foreclosed properties available for sale remains high. With a good number of foreclosed homes ready to be sold, the prices of these homes also tend to fall dramatically. This is undoubtedly great news for you, if you are looking at buying a property in Michigan.

While you may be tempted to buy a readily available foreclosed property with an attractive price tag, that best fits your budget, do remember that buying a foreclosed home is not always a risk-free bet. It is important to consider several factors before you make a decision. Here is a list of things to keep in mind when you’re buying a foreclosed property in Michigan:

Approach the right people. When you’re looking at foreclosed homes in Michigan, make sure you contact the right people. In general, banks in Michigan hire REO property agents to sell foreclosed properties. These agents maintain comprehensive information on foreclosure listings in and around Michigan. Taking advantage of these listings can help you identify the best available property that fits your budget.

Research carefully. Another important point to remember when you buy a foreclosed home is that these properties may have liabilities attached to them. So before making a decision, research properly and assess the financial implication of buying it, and find out about the liens and back taxes owned on the property. You can get this information from your courthouse or country records. Make use of available information, and make informed decisions.

Inspect the property. A foreclosed home may not be in the best condition. Since it is uninhabited for months, the property may be poorly maintained, and may have a wide range of problems including plumbing leaks, cracks etc. In such cases, you may inherit a very expensive repair job along with the property, so try to examine the property before you buy it. A home inspector can help you in this regard. If you are buying the property in a foreclosure auction in Michigan, you may not be allowed to inspect the property; be prepared with an alternative.

Get professional help. Buying a foreclosed home involves many procedures and formalities. It is much more complex than a regular purchase, and may need more research and paperwork. Hiring an experienced real estate agent and legal adviser who can help you through the process can help the process go more smoothly.

Foreclosed properties in Michigan are a great investment vehicle. They open up a promising opportunity for first-time buyers too. While there may be some risks in opting for foreclosed homes, this should not deter you from considering them. The above-mentioned checklist can help you make the right decision.

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